FSK Prices Public Offering of $400,000,000 6.125% Unsecured Notes Due 2031

Rhea-AI Summary

FS KKR Capital Corp. (NYSE: FSK) has priced a public offering of $400 million in unsecured notes with a 6.125% interest rate, maturing on January 15, 2031. The notes can be redeemed at par one month before maturity or earlier with a make-whole premium.

The offering, expected to close on September 25, 2025, is being managed by multiple financial institutions including BofA Securities, BMO Capital Markets, and J.P. Morgan Securities as joint book-running managers. FSK plans to use the proceeds for general corporate purposes, including potential repayment of existing debt under credit facilities and notes.

Positive

• New $400 million debt offering provides additional liquidity for the company
• Relatively long-term debt structure with 5.3-year maturity
• Flexibility to redeem notes early provides debt management options

Negative

• 6.125% interest rate represents a new debt service obligation
• Potential increase in overall debt burden if proceeds are not used for refinancing

Insights

Fixed Income Analyst

FSK is raising $400M through 6.125% notes due 2031, potentially to refinance existing debt, impacting its capital structure and interest expenses.

FS KKR Capital Corp (FSK) has priced a $400 million offering of unsecured notes with a 6.125% coupon rate maturing in January 2031. These notes come with standard redemption features including a make-whole provision and par call one month before maturity. The transaction involves an impressive syndicate of 25 financial institutions led by major banks including BofA Securities, BMO Capital Markets, and J.P. Morgan.

The proceeds are earmarked for "general corporate purposes" with specific mention of potentially repaying outstanding debt under credit facilities and certain notes. This language strongly suggests this is primarily a refinancing transaction rather than growth capital.

This debt issuance represents a strategic financial decision that will impact FSK's capital structure and future financial flexibility. As a Business Development Company (BDC), FSK's ability to manage its liability structure is crucial to maintaining its investment capacity and dividend sustainability.

The 6.125% coupon rate provides important context on FSK's current cost of capital in the present interest rate environment. This medium-term debt (approximately 5.25-year tenor) helps FSK better match its liability duration with its typically medium-term investment assets, potentially reducing maturity transformation risk.

By potentially refinancing existing debt, FSK may be proactively addressing near-term maturities or higher-cost debt, which could stabilize or potentially improve its interest expense profile. This transaction demonstrates management's active approach to liability management and maintaining financial flexibility.

PHILADELPHIA and NEW YORK, Sept. 19, 2025 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK) announced that it has priced an underwritten public offering of $400,000,000 in aggregate principal amount of its 6.125% unsecured notes due 2031 (the "Notes"). The Notes will mature on January 15, 2031 and may be redeemed in whole or in part at FSK's option at any time at par plus a "make-whole" premium, provided that the Notes may be redeemed at par one month prior to their maturity. The offering is expected to close on September 25, 2025, subject to customary closing conditions.

BofA Securities, Inc., BMO Capital Markets Corp., ING Financial Markets LLC, J.P. Morgan Securities LLC, KKR Capital Markets LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc., MUFG Securities Americas Inc., Mizuho Securities USA LLC, TD Securities (USA) LLC, HSBC Securities (USA) Inc. and RBC Capital Markets, LLC are acting as joint book-running managers for this offering. BNP Paribas Securities Corp., Citigroup Global Markets Inc., CIBC World Markets Corp., Goldman Sachs & Co. LLC, Barclays Capital Inc., Morgan Stanley & Co. LLC, SG Americas Securities, LLC and UBS Securities LLC are acting as joint lead managers for this offering. ICBC Standard Bank Plc, R. Seelaus & Co., LLC, U.S. Bancorp Investments, Inc., Keefe, Bruyette & Woods, Inc. and Oppenheimer & Co. Inc are acting as co-managers for this offering.

FSK intends to use the net proceeds of this offering for general corporate purposes, including potentially repaying outstanding indebtedness under credit facilities and certain notes.

Other Information

Investors are advised to carefully consider the investment objectives, risks, charges and expenses of FSK before investing. The pricing term sheet dated September 18, 2025, the preliminary prospectus supplement dated September 18, 2025, and the accompanying prospectus dated September 19, 2024, each of which has been filed with the U.S. Securities and Exchange Commission (the "SEC"), contain this and other information about FSK and should be read carefully before investing.

The information in the pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release are not offers to sell any securities of FSK and are not soliciting an offer to buy such securities in any state or jurisdiction where such offer and sale is not permitted.

FSK's shelf registration statement is on file and was deemed immediately effective upon filing with the SEC. Before you invest, you should read the prospectus in that registration statement, the preliminary prospectus supplement and other documents FSK has filed with the SEC for more complete information about FSK and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, FSK, any underwriter or any dealer participating in the offering will arrange to send you the prospectus supplement and accompanying prospectus if you request it, by calling BofA Securities, Inc. at 1-800-294-1322; BMO Capital Markets Corp. at 1-866-864-7760; ING Financial Markets LLC at 1-646-424-6718; J.P. Morgan Securities LLC at 1-212-834-4533; KKR Capital Markets LLC at 1-212-230-9433; SMBC Nikko Securities America, Inc. at 1-888-868-6856; or Truist Securities, Inc. at 1-800-685-4786.

About FS KKR Capital Corp.

FSK is a leading publicly traded business development company (BDC) focused on providing customized credit solutions to private middle market U.S. companies. FSK seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies. FSK is advised by FS/KKR Advisor, LLC.

About FS/KKR Advisor, LLC

FS/KKR Advisor, LLC (FS/KKR) is a partnership between Future Standard, formerly FS Investments, and KKR Credit that serves as the investment adviser to FSK and other business development companies.

Future Standard is a global alternative asset manager serving institutional and private wealth clients, investing across private equity, credit and real estate. With a 30+ year track record of value creation and over $86 billion in assets under management, we back the business owners and financial sponsors that drive growth and innovation across the middle market, transforming untapped potential into durable value.

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries.

Forward-Looking Statements and Important Disclosure Notice 

This announcement may contain certain forward-looking statements, including statements with regard to future events or future performance or operations of FSK. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements. Factors that could cause actual results to differ materially include changes in the economy, risks associated with possible disruption in FSK's operations or the economy generally due to terrorism, geo-political risks, natural disasters or pandemics, future changes in laws or regulations and conditions in FSK's operating area and the price at which shares of FSK's common stock trade on the New York Stock Exchange. Some of these factors are enumerated in the filings FSK makes with the SEC. FSK undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The press release above contains summaries of certain financial and statistical information about FSK. The information contained in this press release is summary information that is intended to be considered in the context of FSK's SEC filings and other public announcements that FSK may make, by press release or otherwise, from time to time. FSK undertakes no duty or obligation to update or revise the information contained in this press release. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. Investors should not view the past performance of FSK, or information about the market, as indicative of FSK's future results.

Contact Information:

Investor Relations Contact 

Anna Kleinhenn
Anna.Kleinhenn@futurestandard.com 

Future Standard Media Team 

Melanie Hemmert
Melanie.Hemmert@futurestandard.com

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SOURCE Future Standard

FAQ

What is the size and interest rate of FSK's new notes offering?

FSK has priced a $400 million unsecured notes offering with a 6.125% interest rate.

When will FSK's newly offered notes mature?

The notes will mature on January 15, 2031.

How does FSK plan to use the proceeds from the notes offering?

FSK intends to use the proceeds for general corporate purposes, including potentially repaying outstanding indebtedness under credit facilities and certain notes.

What are the redemption terms for FSK's 2031 notes?

The notes can be redeemed at par one month before maturity, or earlier at par plus a make-whole premium.

When is FSK's notes offering expected to close?

The offering is expected to close on September 25, 2025, subject to customary closing conditions.